As we know, the financial services industry is known for its slow uptake of new technology, favoring instead the ‘tried and true’ tactics...
On November 9, Donald J Trump was officially declared the future and 45th President of the United States. Though there has been a great deal of speculation (as with any election), the short and longer-term financial implications of this election remain unclear.
So what to do next?
Before you make a mad dash for your laptop to start picking new stocks based off of speculation (or put all of your eggs in the gold basket), consider the bigger picture. Long-term investing means recognizing that the markets will drop and the markets will rise over time. This is a natural rhythm as a result of international events, economic uncertainty, or changing regulations.
Check out the chart below for an idea of how much one piece of stock can fluctuate in value based in various events, yet it remains in the interest of the long term investor to hold onto it as long as possible. A disciplined investor looks beyond the concerns of today and towards the long-term growth potential of markets.
The bottom line is that no one can predict exactly what the market is going to do, and that’s OK. Changing investment strategy or redeeming options too soon based on a singular event can mean that you miss out on the recovery, and the increased value of your asset that comes with it.
Our investment philosophy at Questis has been tested before by major world events including periods of uncertainty and heightened volatility. We keep a close eye on market events all over the world, and we consider the implications of new information and current events as they come to light.
We believe that the strategy of keeping your eggs in many different baskets (a globally diversified portfolio) over a longer period of time is still the best strategy to weather the ups and downs of a global and ever-changing market.